The accuracy of scanned prices

David M. Hardesty; Ronald C. Goodstein; Dhruv Grewal; Anthony D. Miyazaki; Praveen Kopalle

doi:10.1016/j.jretai.2014.03.006

The accuracy of scanned prices

David M. Hardesty, Ronald C. Goodstein, Dhruv Grewal, Anthony D. Miyazaki, Praveen Kopalle

Research output: Contribution to journal › Article › peer-review

8 Citations (SciVal)

Abstract

Nearly all retailers use price scanning systems to process transactions quickly, and presumably, accurately. Inaccuracies in scanned prices have important implications for retailers in that undercharges may impact retail profitability while overcharges could result in negative consumer perceptions of retailers and continued legal action. Here, we investigate the overall State of accuracy of scanned prices and develop certain empirical generalizations. To do so, we begin with a review of what is known regarding the accuracy of scanned prices and conduct a reanalysis of FTC data and compare the results with those from more recent cross-sectional data from the State of Washington. We then conduct a thorough analysis of a large longitudinal price scanner data set, with 231,760 products screened over a 15-year period. We investigate accuracy across different retailer characteristics, merchandise locations, and promotional activities. Implications of these results for retailers are discussed.

Original language	English
Pages (from-to)	291-300
Number of pages	10
Journal	Journal of Retailing
Volume	90
Issue number	2
Early online date	5 May 2014
DOIs	https://doi.org/10.1016/j.jretai.2014.03.006
Publication status	Published - 1 Jun 2014

Keywords

Empirical generalizations
Federal Trade Commission
Price accuracy
Scanner data

ASJC Scopus subject areas

Marketing

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10.1016/j.jretai.2014.03.006

Cite this

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abstract = "Nearly all retailers use price scanning systems to process transactions quickly, and presumably, accurately. Inaccuracies in scanned prices have important implications for retailers in that undercharges may impact retail profitability while overcharges could result in negative consumer perceptions of retailers and continued legal action. Here, we investigate the overall State of accuracy of scanned prices and develop certain empirical generalizations. To do so, we begin with a review of what is known regarding the accuracy of scanned prices and conduct a reanalysis of FTC data and compare the results with those from more recent cross-sectional data from the State of Washington. We then conduct a thorough analysis of a large longitudinal price scanner data set, with 231,760 products screened over a 15-year period. We investigate accuracy across different retailer characteristics, merchandise locations, and promotional activities. Implications of these results for retailers are discussed.",

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AU - Hardesty, David M.

AU - Goodstein, Ronald C.

AU - Grewal, Dhruv

AU - Miyazaki, Anthony D.

AU - Kopalle, Praveen

PY - 2014/6/1

Y1 - 2014/6/1

N2 - Nearly all retailers use price scanning systems to process transactions quickly, and presumably, accurately. Inaccuracies in scanned prices have important implications for retailers in that undercharges may impact retail profitability while overcharges could result in negative consumer perceptions of retailers and continued legal action. Here, we investigate the overall State of accuracy of scanned prices and develop certain empirical generalizations. To do so, we begin with a review of what is known regarding the accuracy of scanned prices and conduct a reanalysis of FTC data and compare the results with those from more recent cross-sectional data from the State of Washington. We then conduct a thorough analysis of a large longitudinal price scanner data set, with 231,760 products screened over a 15-year period. We investigate accuracy across different retailer characteristics, merchandise locations, and promotional activities. Implications of these results for retailers are discussed.

AB - Nearly all retailers use price scanning systems to process transactions quickly, and presumably, accurately. Inaccuracies in scanned prices have important implications for retailers in that undercharges may impact retail profitability while overcharges could result in negative consumer perceptions of retailers and continued legal action. Here, we investigate the overall State of accuracy of scanned prices and develop certain empirical generalizations. To do so, we begin with a review of what is known regarding the accuracy of scanned prices and conduct a reanalysis of FTC data and compare the results with those from more recent cross-sectional data from the State of Washington. We then conduct a thorough analysis of a large longitudinal price scanner data set, with 231,760 products screened over a 15-year period. We investigate accuracy across different retailer characteristics, merchandise locations, and promotional activities. Implications of these results for retailers are discussed.

KW - Empirical generalizations

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The accuracy of scanned prices

Abstract

Keywords

ASJC Scopus subject areas

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